Skip to comments.The American Decline May Do What Republican Agitation Couldn't: Halt the Growth of Government
Posted on 10/18/2013 6:18:29 PM PDT by JerseyanExile
Hey, let me start you weekend with a huge downer.
It is beginning to appear that the "New Normal" of very slow growth -- almost indistinguishable from a recession -- is going to be with us for a long time to come.
Previous generations of politicians could reach agreements on taxing and spending by punting their differences to the next generation -- that is to say, where they could not agree, they could agree to borrow the difference, and expect the next generation to pick up the tab.
This was never moral nor responsible but it was workable so long as each generation was wealthier than the last, so that the next generation would have the money to pay for the previous one's profligacy and irresponsibility.
What happens when that is no longer true?
We are about to enter a truly brutal phase of American politics, in which we will less and less be able to call in the wealth of the next generation as a way of papering over differences between segments of the population. For a long time to come, a Winner today will not make a Loser some time down the road (who cannot complain too much, as his loss will register in the future).
Government-Mandated Winners will come at the expense of Government-Selected Losers in the here and now, people who can and will object. Passionately, and even, possibly, violently.
The United States has been, thusfar, exceptional in a fairly low level of social disorder and political violence. Such things plague most of the rest of the world, but the United States has mostly avoided such things.
But we avoided such things because we were always becoming richer, and could afford to float a certain amount of keep-the-peace debt.
But we've lost that exceptional advantage. The last big innovation in American industry was the internet, and while this does provide certain improvements in informational efficiency, it has nothing like the game-changing effects of the rise of mass production, or the rise of the steam engine and then the gas-powered engine, or the rise of electrification, the explosion in agricultural productivity, and so on.
Those were major technological breakthroughs that provided immediate increases in wealth and then even more increases over a period of decades, as the technologies were further exploited.
The internet boom and potent, cheap computing power provided a small boost in the mid-nineties, and by 2010, its capacity to increase efficiency was all but fully exploited.
There will not be another big gain in American productivity, and hence American prosperity, until there is a similarly large breakthrough in a technology with wide economic implications.
Or a change in government policy. Which seems increasingly unlikely.
Or a change in the national character, away from entitlement and sloth and towards self-reliance, hustle, and industry. Which seems increasingly... impossible.
Here now begins the Spoils Society, born in the throes of the Decadent Phase of American History.
Perhaps in 20 years we'll figure out fusion power and we'll have another period of growth for 20-30 years. Or perhaps again not.
I guess we'll just have to hope. Because that's all we're reduced to now, hoping that someone somewhere does something to bail us out.
The economic and political decline did not stop the growth of government on the UK or France.
In fact it almost seems as economic bad times accelerated the process.
Good theoretical approach.
Correct answer: fracking.
American heg forever.
Obama and the democrats are already blaming this on the Republican House Government Shutdown.
Anything bad that happens to the economy between now and the end of Obamas second term will be blamed on the government shutdown. The American people will buy it.
Its going to take a lot of work to reverse this propaganda from the left. Things are bad in Venezuela and the leftist government also uses this tactic. Everything gone wrong is blamed on the evil United States. The leftist president in Venezuela has manufactured so many false crisis and made up so many excuses that Ive lost count.
Today its hard to even plan a vacation outside Venezuela because in order to book a flight you need to do it months in advance, wait in line and often times you get bumped and need to start over again.
So far, the people seem to buy the lies hook, line and sinker.
Since Obama has taken the White House I often look at Venezuela to see whats coming down the line for us. So far, its been a relatively accurate forecast. Thats most unfortunate.
The conservative republicans need to improve their PR machine. Ted Cruz is GREAT, but he needs to be out there even more and there needs to be many more of them (and I mean elected officials and candidates). AM Talkers is not enough.
Every time a fascist government runs out of its own Peters to rob, they invade their neighbors and rob their Peters to keep their own Pauls from revolting.
Japan has been at this for over 25 years and still no implosion. (Not to say it isn’t coming. Anyone who understands math and history is already prepared.)
It hasn’t worked so far. The last five years have marked the biggest decline in American history, yet they also mark the largest increase in government spending since WWII.
The current generations in power are systematically looting the country, and they could care less what happens to the country when they’re gone, as long as they can stay in control while they’re alive.
And don’t forget 3D printing...
The government could decree it and maybe make people repeat it but the government can’t make it true
The history of socialism would suggest that when everything is government, that might be the end of its growth.
I was watching Juan of the Dead, a Cuban zombie film. I couldn’t help but see the parallels to today.
* Juan says he survived Angola, he survived the “Special Period” of hard rationing, and he can survive this (zombies)
* The zombies are like irrational period in the Special Period, eating cats like they did, but not just cats but people
* Officially, it was the fault of dissidents (Americans and their supported Cubans) when reality was far worse
* People muddled by and hussled on the side until it really was impossible to survive, because of inertia
Being a baby boomer, the next time some punk tells me his generation is smarter I’m going to say “Your generation is the first generation to do worse than the generation before it. That doesn’t sound so smart to me.”
We will become Venezuela or Argentina. Only a matter of time now. The people are just too ignorant and they are proud of it.
I’m a baby boomer like you, but I think my children are worse off because of our generation and our parents borrowing all of their future income to pay for tens of millions of mindless government jobs and trillions borrowed and sunk into entitlement and pension Ponzi schemes. We poisoned their early education by abandoning morality and teaching them not to strive for useful knowledge.
We imported cheap labor to keep them out of entry level jobs and then exported the manufacturing jobs that allowed us to have a thriving middle class. Rather than paying for their college out of our own savings we formed an education financing bubble making them borrow so much for college that it’s impossible for them to form savings if they are lucky enough to find a job in the zombie economy we’re giving them.
We may even have made them stupid enough to keep them from figuring out how to pull the plug on greedy bastards like us when they just can’t afford to keep spending money they don’t have to keep us alive.
Yep, we sure showed those punks how smart we are.
I recommend every parent with kids show them this video
Hayek’s ‘The Road to Serfdom’ in Five Minutes
Retirement - Fagedabadit. Most will never see matching funds, living hand to mouth most won't be able to save a dime.
Afford a car - Fagedabadit. The next generation will be unable to afford them and slowly learn they cannot afford the loans. Mass transit and walking will be their mode of transportation. Airplane Flights will be for the elite, not them.
As for the elite, they will only grow richer. The poor will get poorer and the rich will get richer.
The government will give out more money to try to help those not making it on the 29 1/2 work week in the big cities. Welfare will come back.
College will again be for the elite as the working poor will be unable to even think about sending their kids to college.
Yes, Obamacare is going to sink the next generation. And the young are going to know it when the IRS comes to fine them.
The bottom line is the genxers and millinials put themselves in the situation they’re in by voting for democrats. And for the most part they still do. I’ve been screaming conservatism since I was 16 years old.
Our biggest mistake was allowing the communists to take over the education system. My kids came up in the public school and think they are smarter than me. The destruction of the mind started when we were in school and constantly got worse. The genxers and the millinials have this sense of entitlement that the boomers never had. They were taught in school that they’re entitled to anything they want. I never felt entitled to anything. I worked for what I wanted. I tried to teach that to my kids. But it’s hard to do when the school system is telling them otherwise.
So, I don’t take the blame. And I don’t worry about it. I won’t have to pay it off. I’ll leave the debt to the ones behind me. Like I said, I didn’t do it. I fought it. I lost. They won. They got what they wanted. They got new cars and new I-phones and new Reeboks and $100 tickets to see Miley and Brittany. The bill is about to come due.
I'd prefer the former, but I expect the latter, since government must always be funded.
Interesting times ahead.
It didn't kill retail, it competes with retail, and filled niches in a way that was previously unimaginable.
The internet makes the delivery of goods and services even more competitive and efficient.
Well, except for government web sites.
For what, five years?
The "greatest generation" and the "baby-boomers" have been voting socialist and robbing future generations for decades. That's where the blame lies.
Regardless of who's to blame, we're all going to eat it, so we have to prepare and fight.
That's laughable. Here's a "labor productivity" chart, a euphemism for computerized machine automation.
true. the USA squandered a lot of money. however, there is a tsunami of money coming the way of the USA as a result of the fracking boom.
The fracking revolution is an order or two of magnitude more significant for the USA than the dot come boom of the late 90’s.
the oil and natural gas fracking boom in the USA is literally changing capital flows around the world. In a few short years the USA will be a net energy exporter rather a net energy importer. Manufacturing is starting to come back after a decades long journey overseas.
You guys are totally missing what’s going on in the real economy.
Yes I do agree that what’s happening is happening DESPITE the best efforts of the Obama admin to KILL it.
Sad that you’ve written off your children. I’m at least going to make sure mine have a solid education and financial foundation and they understand the road to Hell this society is barreling down before I check out.
You’re correct though that what comes next is up to them.
God Bless you and your family.